Correlation Between Agricultural Bank and BlueFocus Communication
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By analyzing existing cross correlation between Agricultural Bank of and BlueFocus Communication Group, you can compare the effects of market volatilities on Agricultural Bank and BlueFocus Communication and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Agricultural Bank with a short position of BlueFocus Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and BlueFocus Communication.
Diversification Opportunities for Agricultural Bank and BlueFocus Communication
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and BlueFocus is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and BlueFocus Communication Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueFocus Communication and Agricultural Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Agricultural Bank of are associated (or correlated) with BlueFocus Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueFocus Communication has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and BlueFocus Communication go up and down completely randomly.
Pair Corralation between Agricultural Bank and BlueFocus Communication
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.76 times less return on investment than BlueFocus Communication. But when comparing it to its historical volatility, Agricultural Bank of is 3.16 times less risky than BlueFocus Communication. It trades about 0.1 of its potential returns per unit of risk. BlueFocus Communication Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 539.00 in BlueFocus Communication Group on August 27, 2024 and sell it today you would earn a total of 498.00 from holding BlueFocus Communication Group or generate 92.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. BlueFocus Communication Group
Performance |
| Timeline |
| Agricultural Bank |
| BlueFocus Communication |
Agricultural Bank and BlueFocus Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and BlueFocus Communication
The main advantage of trading using opposite Agricultural Bank and BlueFocus Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, BlueFocus Communication can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BlueFocus Communication will offset losses from the drop in BlueFocus Communication's long position.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Ping An Insurance | Agricultural Bank vs. China Mobile Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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